Proof your new internet idea with these jump-start tips on market research

March 2, 2010

Tags: internet ideas, market research, startup

“By far, the most prevalent of these traps, particularly among entrepreneurs with a technical background, is mistaking the ability to build a product for the ability to satisfy a market need.” – Score article

If you have a great idea that you want to develop, make sure you do some basic market research first. You probably have a good intuition that may tell you how successful you feel your idea will be, but nothing can substitute for getting unbiased, robust facts on how your idea will fare in its particular niche. Market research in short will tell you what factors will support and hinder your idea. A few questions that market research answers, includes :

How many competitors are on the market?
How are those competitors doing?
What business and pricing models do competitors use?
How can you market to customers?
How many customers are available for your product or service?
What kind of profitability and margins can you expect?
What are the costs of doing business in your niche?
What are the startup costs for your business?
How fast can you expect to grow in your market?
Is your market niche growing or not?

Here are some resources that you can use to kick off your market research. If you’d like help with this process, please contact us and for a reasonable price we will give a detailed assessment of your idea and its feasibility in its targeted market niche.

NetMBA – Definitions on market research and what you should be looking for
Score – Fantastic resources for all things small business, including how-tos on market research
Google – Find your competitors and see what they are doing
US Bureau of Census – demographic data on American households
Trade Associations – use trade associations to get specific details on your market niche
Top 10 Market Research Mistakes – useful advice

For first hand, primary source, market research create a survey for your customers and prospects to answer. This survey should use questions to find out how, why, when, where, and what potential customers. What are their motivations? What turns them on and what turns them off?

We also recommend using resources like Score.org to help you get advice on your business. You can even create an advisory board selecting members who opinions your value based on their experience in starting businesses, your target market niche, financial background, marketing background or similar qualities that will help you.

Finally, use good old internet search to find your competitors and relevant information about your idea and market niche.

If you’d like help with this process, please contact us and for a reasonable price we will give a detailed assessment of your idea and its feasibility in its targeted market niche.

Good Luck and let us know how the research goes!

Chris